The process of describing an object's location relative to another object results in ambiguity. How do people handle this ambiguity? The present studies examined spatial language processing when use of different reference frames results in ambiguity. We investigated whether electrophysiological (ERP) measures of cognitive processing may elucidate underlying reference frame processing; in particular, we were interested in semantic integration. ERP results showed a larger N400, peaking between 300 and 375 ms, when the intrinsic frame was not used. Behavioural results mirrored this finding, indicating a reduced cognitive processing requirement for the intrinsic reference frame. Previous work has not definitively tied spatial reference frame processing to specific ERP components and their associated cognitive processes. Although the N400 peak seen in this data is early, additional work supports the N400 interpretation, thereby linking spatial frame processing to semantic integration. Results are discussed within the larger context of spatial reference frame processing.